PRECIOUS-Gold set for fourth weekly gain on softening dollar

Reuters

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 (Adds detail, quotes, updates prices)
    * Gold up about 0.6 percent this week
    * Palladium on course for 1.8 pct weekly gain 

    By Arijit Bose
    BENGALURU, Jan 11 (Reuters) - Gold rose on Friday as the
dollar slipped on expectations that brakes could soon be applied
to U.S. interest rates, putting the non-yielding metal on track
for a fourth straight weekly gain.
    Spot gold  XAU=  rose 0.4 percent to $1,292.01 an ounce by
1320 GMT. U.S. gold futures  GCv1  were up 0.4 percent at
$1,292.90.
    The dollar slipped against other major currencies  .DXY ,
impaired by Fed Chairman Jerome Powell's comment that the
central bank could be patient on rate policy.  urn:newsml:reuters.com:*:nL1N1ZA2CM
 USD/ 
    "Gold rose on a somewhat weaker dollar, but at the moment it
 seems to be trying to overcome the $1,300 hurdle," said
Commerzbank analyst Daniel Briesemann.
    The precious metal was also supported by increasing market
nervousness over U.S. President Donald Trump's unbending demand
for a wall to be built on the border with Mexico.  urn:newsml:reuters.com:*:nL1N1ZA0KJ
    Trump threatened on Thursday to use emergency powers to
bypass Congress to pay for the proposed wall.  urn:newsml:reuters.com:*:nL1N1ZA0KJ
    "If more speculators jump on the bandwagon (because of the
U.S. government shutdown), gold will pass the $1,300 level,"
Briesemann said.
    Gold, which is used as a safe-haven investment during times
of economic, political and financial uncertainty, is up about
0.6 percent for the week.  MKTS/GLOB 
    "Volatile equity markets and a stalemate over the U.S.
government shutdown should keep (gold) prices well supported. In
fact, investors continue to pour money into the gold ETF
market," ANZ analysts said in a note. 
    Holdings  HLDSPDRGT=XAU  in the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust  GLD , are near their
highest since late July.  GOL/ETF 
    "The $1,300 resistance level for gold is looking very
vulnerable. Risk aversion has been supportive, but as we're
seeing now, its primary driver is the dollar," said OANDA senior
market analyst Craig Erlam.
    "And the dollar softening as trade relations between the
U.S. and China improve should continue to lift gold."
    U.S. officials expect China's top trade negotiator to visit
Washington this month after this week's talks with mid-level
officials in Beijing.  urn:newsml:reuters.com:*:nL3N1ZA03L
    Among other precious metals, palladium  XPD=  firmed by 0.1
percent to $1,323.49 an ounce and was up about 1.8 percent for
the week. Silver  XAG= , meanwhile, was up 0.6 percent at $15.66
and platinum  XPT=  rose 0.2 percent to $821.30.

 (Reporting by Arijit Bose in Bengaluru
Editing by David Goodman)
 ((Arijit.Bose@thomsonreuters.com; Within U.S. +1 651 848 5832,
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